Commercial property market a waiting game ahead of election

The decisions made at the polls will ripple through various sectors, including real estate.

Occasionally, it’s a great idea to clear your mind, empty the inbox, and allow your thoughts to be random. Today, dear readers, is such a moment.

It’s fascinating how the mind can wander through a labyrinth of thoughts, each one seemingly unrelated yet all part of the same intricate web of our daily lives.

Today, I’m embracing the randomness and sharing a glimpse into the eclectic musings of a commercial real estate broker’s mind.

Someone famous once opined, they’re only opinions, however, they’re all mine.

Presidential election

The political climate is heating up as we approach the next presidential election.

The decisions made at the polls will ripple through various sectors, including real estate. Policies on taxes, environmental regulations, and economic incentives could dramatically shape the landscape of commercial real estate. It’s a waiting game now, as we brace for the changes that a new administration might bring.

Interest rates

Interest rates are the heartbeat of real estate investment. Recently, there’s been a lot of speculation about whether the Federal Reserve will adjust rates again. Lower rates have made borrowing cheaper, fueling investment and development. However, the potential for rising rates could cool the market, making it more challenging for buyers to secure favorable financing terms.

Owner occupant activity

There’s a noticeable trend of increased owner-occupant activity. More businesses are opting to purchase their spaces rather than lease. This shift is driven by the desire for long-term stability and control over their work environments. It also reflects confidence in their growth prospects and a strategic move to build equity in their properties.

Vacation schedule

Even commercial real estate brokers need to unwind. Planning a vacation amidst a busy schedule can be a challenge, but it’s essential for maintaining balance. Whether it’s a beach getaway, a mountain retreat, or exploring a new city, taking time off to recharge is crucial. This summer, I’m hoping to strike that perfect balance between work and relaxation.

This summer

Summer often brings a mix of excitement and uncertainty. The market tends to slow down slightly as people take vacations, but it also presents opportunities. This year, I’m anticipating a few surprises – perhaps an unexpected deal or a new trend emerging. Staying adaptable and ready to seize opportunities is key.

Embracing the randomness allows for a broader perspective. It’s a reminder that in the midst of our busy lives, taking a moment to reflect on the myriad thoughts and events can be incredibly grounding. Here’s to the journey and all the unpredictability it brings!

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.